Dictionary of Accounting Terms: growth rate
growth rate
amount of change in some financial characteristic of a company.
- percentage change in earnings per share, dividends per share, revenue, market price of stock, or total assets compared to a base year amount.
Dictionary of Business Terms: growth rate
growth rate
amount of change in some financial characteristic of a company:
- percentage change in earnings per share, dividends per share, revenue, market price of stock, or total assets compared to a base year amount.
- percentage change in an item such as net income considering the time value of money.
- change in retained earnings divided by beginning stockholders' equity.
- net income less dividends divided by common stockholders' equity. A high ratio reflects a company's ability to generate internal funds and thus it does not have to rely on external sources.
Dictionary of Finance and Investment Terms: growth rate
growth rate
percentage rate at which the economy, stocks, or earnings are growing. The economic growth rate is normally determined by the growth of the Gross Domestic Product. Individual companies try to establish a rate at which their earnings grow over time. Firms with long-term earnings growth rates of more than 15% are considered fast-growing companies. Analysts also apply the term growth rate to specific financial aspects of a company's operations, such as dividends, sales, assets, and market share. Analysts use growth rates to compare one company to another within the same industry.
